Market Overview for Enzyme/Tether (MLNUSDT)

Summary
• Price surged 13.1% from 4.86 to 5.08 on strong late-night volume.
• Bullish engulfing patterns formed between 05:30–06:30 ET, confirming momentum.
• RSI hit overbought territory near 75, while MACD crossed above zero.
• Volatility expanded after 05:30 ET with increased range above 5.02.
• Downturns post 15:00 ET saw divergence in volume, signaling potential exhaustion.

Market Performance

Enzyme/Tether (MLNUSDT) opened at 4.86 at 12:00 ET − 1, reached a high of 5.08, a low of 4.84, and closed at 4.99 by 12:00 ET. Total volume stood at 118,432.287, with notional turnover of approximately 590,917.95.

Structure and Momentum

The price action displayed strong upward momentum, particularly from 05:30 to 07:30 ET, where a bullish engulfing pattern formed following a sharp drop from 5.08 to 4.98. This was confirmed by a surge in volume and price rebounding past the prior high. The 20-period moving average on the 5-minute chart crossed above the 50-period, reinforcing the bullish bias.

RSI reached 75 by 06:00 ET, indicating overbought conditions, while the MACD crossed above zero with a strong positive divergence, suggesting continued upward pressure. However, the RSI failed to maintain that high and fell below 70, pointing to potential profit-taking.

Volatility and Reversal Signals

Volatility expanded as the price broke out of a consolidation phase between 4.95 and 5.03. Bollinger Bands stretched wide during the breakout, and the price traded above the upper band for much of the day. A potential reversal may be in play after 15:00 ET, where the price declined without a corresponding volume spike, signaling possible exhaustion.

Fibonacci retracements from the 4.84–5.08 swing suggest key levels at 4.99 (61.8%) and 4.95 (78.6%). The current close at 4.99 aligns with the 61.8% retracement, potentially offering a temporary support zone.

Turnover and Divergence

Turnover surged above $30,000 at 06:30 ET, coinciding with the price reaching 5.08. However, later declines after 15:00 ET occurred on lower turnover, suggesting weakening conviction from buyers. This divergence raises the risk of a near-term pullback to test the 4.95–4.97 level.

Forward Outlook

Price may consolidate around the 4.95–5.03 range ahead of potential follow-through on the bullish breakout. However, a sustained close below 4.95 could trigger a retest of earlier support at 4.88. Investors should remain cautious of overbought conditions and watch for volume divergence in the next 24 hours.